Suez Canal Extends Rate Discount Amid Red Sea Crisis
The Suez Canal Authority (SCA) has extended its discount for containerships transiting the canal on certain long-distance routes, as it deals with a significant decline in vessel traffic and revenue. Since October, containerships traveling directly from ports in North-West Europe and Tangier to ports in the Far East and the eastern ports of South-East Asia have been exempt from the 15% rate increase announced by the SCA last August. This exemption will now continue until at least the end of 2024 and applies to both loaded ships and those in ballast.
This decision comes in response to a persistent drop in canal traffic, with revenues decreasing by nearly 65% year-on-year in May. The SCA reported revenues of USD 337.8 million for the month across all ship types, compared to USD 648.0 million a year earlier. The Suez Canal remains a critical part of Egypt’s economy.
